While it can be difficult for investors to feel optimistic and willing to buy stocks during the current market volatility, the reality is that there are many great stocks on sale right now. Prices for growth stocks in particular have been beaten down this year, putting them at extremely attractive prices and valuations.
Investors who can stomach the near-term volatility are likely to be rewarded long-term as markets rebound and the share prices of leading growth stocks rebound and ascend to new heights.
While the market has pulled down all stocks this year on fears of inflation and a potential economic recession, the declines are not due to any fundamental problems at many leading companies. Here are three growth stocks to buy now before a possible recession hits.
|CRWD||CrowdStrike Holdings, Inc.||$163.90|
AMZN stock is down nearly 40% year to date, putting it at fire sale prices. While the Seattle-based company is struggling with some short-term issues, long-term Amazon should continue delivering for shareholders.
Problems weighing on AMZN stock include supply chain constraints, employee wage inflation, and a bet on electric vehicle maker Rivian (NASDAQ:RIVN) that led Amazon to take a $7.6 billion loss on the investment. The Rivian gamble resulted in Amazon reporting a net loss of $3.8 billion in its most recent quarter, pushing its share price down in the process. However, investors should keep in mind that over the past five years, Amazon has delivered a 110% return to shareholders. This stock is built to last.
Microchip and semiconductor company Nvidia Corporation (NASDAQ:NVDA) is another great technology stock that is on sale right now. Investors with a long-term horizon can buy NVDA stock at $157, which is only slightly above its 52-week low of $153.28 and 55% below its 12-month high of $346.47.
At these levels, Nvidia really is a screaming buy, especially given its increasingly dominant position in the chip and semiconductor space.
The fall in the share price of Santa Clara, California-based Nvidia has more to do with negative investor sentiment and the broader decline in the entire stock market than Nvidia’s performance. Despite some temporary headwinds in the form of inflation and supply chains, Nvidia has continued to beat Wall Street expectations this year.
In its most recent earnings print, Nvidia beat analyst consensus expectations for its revenue and earnings per share. Its total sales were up 46% year-over-year.
However, NVDA stock fell after its earnings when the company provided lower forward guidance, saying video game sales are slowing. But don’t be fooled, Nvidia’s share price will come roaring back when the current bear market ends.
Cybersecurity company CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is not only a solid technology stock, it is also the right firm at the right time. This is because cybersecurity is front-and-center on the minds of government and corporate leaders, as well as investors. Major cyber attacks on leading companies such as Nvidia and Microsoft (NASDAQ:MSFT), as well as Russia’s invasion of Ukraine, have heightened awareness of the importance of cybersecurity. President Joe Biden has publicly urged corporate American to take the issue seriously.
This is good news for CrowdStrike and its shareholders. It also helps to explain why CRWD stock is only down 19% year to date versus a 32% decline for the Nasdaq index on which the company’s shares trade. And at $160 per share, CrowdStrike’s stock is 46% below its 52-week high of $298.48.
Going forward, the stock is sure to rebound and soar to new heights coming out of the current downturn as corporations and governments continue to invest heavily in cybersecurity.
On the date of publication, Joel Baglole held long positions in NVDA and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.